The Federal Trade Commission (FTC) announced that at its request, a Florida court put a temporary restraining order to halt the business of an online high school diploma mill. Diversified Educational Resources, LLC (DER) and Motivational Management and Development Services, Ltd. (MMDS) allegedly grossed over $11 million by selling fake high school diplomas.
The FTC’s press release stated that since 2006, the companies sold diplomas online, “using multiple names, including “Jefferson High School Online” and “Enterprise High School Online.” Their websites claimed that by enrolling in the defendants’ programs, consumers could obtain “official” and accredited high school diplomas and use them to enroll in college, join the military, and apply for jobs. The defendants charged students between $200 and $300 for a diploma, and a preliminary review of bank records suggests that defendants have taken in more than $11,117,800 since January 2009.”
According to the complaint, “the defendants violated the FTC Act by misrepresenting that the diplomas were valid high school equivalency credentials and that the online schools were accredited. The FTC says the defendants actually fabricated an accrediting body to give legitimacy to the diploma mill operation.”
Corporate Screening’s education verification service identifies diploma mills and phony accrediting agencies that are not recognized by the U.S. Department of Education. For more information about diploma mills, we invite you to check out the article, “High School Diploma Mills” featured in a previous edition of our newsletter, Screening Solutions.
Washington D.C. is the most recent city to join the “ban the box” movement, and the city has passed “one of the most stringent ban-the-box laws in the nation,” according to a blog by Baker & Hostetler’s Todd Lebowitz. The “ban the box” regulation affects employers (both public and private) who have at least 10 employees in the District of Columbia, and “covers background checks that are performed not only before employment, but also before retention as an independent contractor or as an unpaid intern.”
Titled the Fair Criminal Records Screening Act, the law was signed by the mayor and has to go to Congress for approval before it takes effect.
The blog provides details about the new law. Highlights include:
As with other ban the box laws, there are exceptions. These include:
As we have recommended before, this is a good time for employers to review and revise their applications if necessary. And given that questions about criminal past cannot be asked either on the application or during interview, affected employers should review their hiring practices to ensure that they comply with the new law. For additional details, we encourage you to read the Baker & Hostetler blog.
After assaults on two women earlier this month by a taxi driver in Honolulu, HI, there are new concerns about safety. At issue is background checks done on cab drivers. According to police, the current city ordinance requires that background checks only go back two years. KHON2 in Honolulu reports that several owners of cab companies recently met with members of the Honolulu City Council at a hearing committee to discuss expanding background checks to more than two years.
The length of time a background check has to go back is clearly problematic for many people. In a follow up story to the assaults, KHON2 spoke with Howard Higa, president of The Cab, a taxi company that has over 800 drivers, and asked what requirements are necessary to work as a driver for the company. He responded that they needed a taxi license, insurance and a two year background check.
But Higa added that he would like to see this changed, “In my opinion, there are certain crimes or certain things that drivers have done in the past that should never be forgiven,” Higa said, “and I believe that the background checks should go further back … They should be five, maybe even 10 years.”
Cab companies want to expand the background checks, and some city council members are listening. Calling it a public safety concern, those council members say they will look into expanding background checks. While no resolution has yet been proposed, the subject will be discussed further at the next committee meeting.
It is expected that Illinois Governor Pat Quinn will sign new “ban the box” legislation that will remove questions about criminal background history from employment applications. This would expand the state’s existing laws to affect private employers with 15 or more employees, and will also affect employment agencies.
Employers will still be able to conduct background checks, but they will be prohibited from asking about the applicant’s criminal background history until the job interview or when a conditional job offer has been made (if no interviews are conducted). If signed, the law will take effect on January 1, 2015.
As we have noted before, more states and communities are enacting “ban the box” legislation, and it continues to expand to include private employers. If Governor Quinn signs the bill, Illinois will become the fifth state to enact “ban the box” legislation that affects private employers.
In an update to our blog posted on March, 14, 2014, the city of Baltimore passed a new “ban the box” law that pertains to private employers. Here are the details:
Who does this law affect? Employers with 10 or more full-time equivalent employees. According to the article, “Employment” is defined broadly as “any work for pay” and “any form of vocational or educational training with or without pay.” Further, “employment” includes contractual, temporary, seasonal, or contingent work and work through the services of a temporary or other employment agency”.
What are the prohibitions? According to the National Law Review, the ordinance is broad, as employers are prohibited to obtain “any information in an application’s criminal background” until after making a conditional offer of employment. This means employers cannot ask any kind of question about the applicant’s criminal history or conduct a criminal background check before the conditional offer of employment.
When will it become effective? August 13, 2014
Although the law affects when employers can ask about an applicant’s criminal past, they are not prohibited from “making an employment decision based on an applicant’s criminal history” or from conducting background checks.
TV station WAND reported that an Illinois Senate committee voted 11-2 on May 14, 2014 to approve legislation that would prohibit private employers with more than 15 employees to ask about criminal history until after the applicant is determined to be qualified. HB5701 is sponsored by Democrat State Senator Tony Munoz from Chicago, and if passed, would take effect on January 1, 2015.
There are exclusions under the proposal, which include construction, emergency medical services and security-related businesses, as well as jobs that are mandated by law to require background checks.
In October 2013, Illinois Governor Pat Quinn signed an administrative order that banned state employers from asking about criminal history on applications. The proposal would expand “ban the box” legislation to private employers.